Colorado — Thanks to a booming economy and low mortgage rates — according to ATTOM Data Solutions — Colorado will continue to be one of the nation’s top states for home prices and home sales in the next two years.
“Colorado will remain one of the nation’s fastest growing states in the upcoming years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “More than 61 percent of Colorado’s population has either relocated to the state from another state or is new to Colorado, resulting in a continuing influx of buyers and short-term renters into Colorado,” Blomquist said.
Colorado is experiencing more growth than ever thanks to a booming job market, low unemployment, which has resulted in a shortage of housing.
“Colorado’s demand for housing is outpacing supply, with home prices increasing more than 13 percent annually in the second quarter, which has led to home values surpassing pre-recession highs in 2011,” Blomquist said. “On top of the slowdown in home values, the low mortgage rates are helping to boost home sales. Low mortgage rates allow home buyers to lock in the lowest home loan rates and purchase a home, while low unemployment is boosting demand for homes,” Blomquist said.
“Colorado is already seeing a decline in home sales in recent months,” he said. “Monthly home sales declined by 7 percent in May, the first decline since last summer. But the market started to show signs of improvement in June. Home sales increased 4 percent from the previous month and 5 percent from the previous year. With home sales continuing to trend up, home prices will continue to increase.”
Take a look at the best states to buy a home in 2021.
Colorado – Multiple home sales per listing. Visit ATTOM.com/Colorado for more.
Homes in Colorado
Venterra Real Estate spear-heads the ratification of Colorado as perhaps the best state to buy a home in right now, as will become apparent to someone who takes the time to run a search based on the many key features sought, like affordability, etc.
Colorado — Affordability
Colorado’s current inventory of homes remains at a low level due to a large number of foreclosures and short sales in the previous two years. As a result, home prices are increasing, leading to low affordability.
Affordability measures home price and property taxes, and the cost of homeowners insurance.
Colorado — Access
Colorado’s median household income for Colorado residents is $61,102.
Colorado – Owning a Home
Colorado’s homeownership rate — current homeowners — is 63 percent. This is up from 57 percent in 2016 and 49 percent in 2011, but is still well below the national homeownership rate of 68 percent. The rate is also below the national average of 65.6 percent.
Colorado’s homeownership rate peaked in 2011, when 81 percent of Colorado residents owned a home. At that time, mortgage rates were higher than today, at around 4.15 percent. The trend of home ownership peaked in Colorado in 2016, at 77 percent. Home prices increased sharply in 2016, while mortgage rates decreased, resulting in home prices surpassing pre-recession highs and a decrease in home affordability.
Connect with local real estate professionals and enjoy updates on the latest market trends.